Docutech is updating the Texas version of HELOC Agreement (Cx21652) to include a new Paragraph 31 entitled “Intention to Comply with Texas Constitution” to make Cx21652 more consistent with the Fannie Mae Uniform Security Instrument provisions found in the third paragraph of Section 5 of the Texas Home Equity Note (Form 3244.1).
The new language is:
“31. Intention to Comply with Texas Constitution.
It is the express intention of you and us to structure this Extension of Credit to conform to the provisions of the Texas Constitution applicable to extensions of credit as defined by Section 50(a)(6) and Section 50(t), Article XVI of the Texas Constitution. If, from any circumstance whatsoever, any promise, payment, obligation, or provision of this Agreement, the Security Instrument, or any other loan document relating to this Extension of Credit transcends the limit of validity prescribed by applicable law, then such promise, payment, obligation, or provision will be reduced to the limit of such validity, or eliminated as a requirement, if necessary for compliance with such law, and such document may be reformed by written notice from us without the necessity of the execution of any new amendment or new document by you.”
Additionally, grammatical inconsistencies have been corrected for all state versions of Cx21652.
These changes are available for testing on Stage & Stage 2 servers and will take effect on December 20, 2023. If you have any questions or concerns, please contact Client Support at 1.800.497.3584.
COM-3929
DR-147223